Day: January 21, 2022

A firm may be able to recover a debt that was previously written off. The following entries will be made if this happens: Debit – Debtors Credit – credit bad debts recovered account – to restore the bad debt recoverable. Read More …

In some cases a firm may create a provision for discounts allowable in addition to provision for doubtful debts. This happens where a firm anticipates that some of the debtors may take up cash discounts offered by the firm. The Read More …

Some debtors may not pay up their accounts for various reasons e.g. a debtor may go out of business. When a debtor is not able to pay up his/her account this becomes a bad debt. Therefore the business/firm should write Read More …

A prepaid expense is an expense that is not payable but cash has already been paid. A prepaid expense should not be charged in the P&L a/c but should be carried forward to the next financial period and should be Read More …

Qualities of an Effective research Topic A good research topic has the following qualities: It is researchable: That means it is a subject where the research instruments can be easily formulated and the study population sampled. The objectives that will Read More …

This is income that is not yet due but cash has been received for it. This happens where an income is payable in advance e.g. Rent payable 3 months in advance. A prepaid income should not be reported in the Read More …